Business
Madalena Announces Closing of Transformational and Strategic Acquisition in Argentina and Proa-3 Well Results on Surubi Block
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./ ...
About this update from Centaurus Energy Inc.
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN\n THE U.S./ \n\n\nTSXV Trading Symbol: MVN\nOTC Trading Symbol: MDLNF\n\n\nCALGARY, June 25, 2014 /CNW/ - Madalena Energy Inc. (\"Madalena\" or the \"Company\") (TSXV: MVN and OTC: MDLNF), is pleased to announce that it has closed the acquisition (the \"Acquisition\") of the Argentinean business unit of Gran Tierra Energy Inc. (\"Gran Tierra\").\n\n\nThe Acquisition is highly accretive and includes Proved and Probable (\"2P\") reserves of 6,513 Mboe at December 31, 2013, estimated current\n production of approximately 3,300 Boe/d (~78% oil), 11 exploration and\n production blocks comprising approximately 890,000 net acres and a\n fully functional independent business unit in Argentina, with an\n experienced technical and operational team. The purchase price was\n US$63 million, payable in US$49 million cash and 29,831,537 common\n shares of Madalena (\"Common Shares\") at a deemed issue price of CDN$0.51 (US$0.469).\n\n\nThe Acquisition provides Madalena with a solid platform for growth which\n more than triples the Company's production base and significantly\n increases cash flow from its Argentinean assets.  Madalena's current\n corporate production is estimated to be approximately 4,900 Boe/d (~72%\n oil and NGLs), ~80% of which is from Argentina. Associated cash flow is\n expected to be reinvested into both high impact conventional\n opportunities in Argentina and to accelerate the delineation of the\n Company's unconventional shale and tight sand resources within the\n Neuquén basin.  Madalena now has a strong portfolio of assets with\n exposure to a low decline stable production base, an extensive\n inventory of low risk development drilling opportunities, a seismically\n and technically defined conventional portfolio of assets, and\n significant unconventional shale (Vaca Muerta, Lower Agrio and Los\n Monos shales) and tight sand resources.\n\n\nMadalena estimates annual cash flow from operations of US$35 - US$45\n million over the next twelve months which is expected to provide the\n Company with the ability, when combined with cash on hand and available\n credit, to execute a US$50 - US$60 million capital program over the\n next 12 to 18 months while maintaining a strong balance sheet. Madalena\n will provide additional go...